The Pacific Catastrophe Risk Insurance Company (PCRIC), a provider of parametric disaster insurance, and the United Nations Office for Disaster Risk Reduction (UNDRR) signed a Letter of Cooperation to strengthen their shared commitment to advancing disaster risk reduction and financial resilience across the Pacific region by advancing parametric insurance models to make them proactive resilience tools.
The pair signed this letter during the Pre-COP engagements in Nadi, Fiji. For context, the PCRIC is a donor-funded entity established to provide Pacific Island nations with access to disaster risk insurance and related services.
The agreement is effective until 2030 and underscores the pair’s shared vision of regional coordination, sustainable resilience, and proactive disaster risk reduction.
The high-level partnership also aligns with the Sendai Framework for Disaster Risk Reduction 2015–2030, the 2050 Strategy for the Blue Pacific Continent, and the Framework for Resilient Development in the Pacific (FRDP).
As per the agreement, the duo will collaborate on four key areas of impact. As mentioned earlier, the first is advancing parametric insurance models to make them proactive resilience tools and supporting Pacific governments in strengthening disaster risk financing strategies.
Additionally, the pair will align trigger-based payouts with proactive planning to enable early action, inclusive disbursement strategies, and “Build Back Better” recovery principles. This will be done through the integration of scientific risk assessments and advanced analytics into financial protection mechanisms, while promoting data sharing through initiatives such as the Global Observatory on Disaster Risk Financing.
Lastly, the pair will focus on applying budget stress testing and ROI assessments to demonstrate the economic value of preventive investments and strengthen the case for parametric insurance.
Aholotu Palu, Chief Executive Officer, PCRIC, commented, “This partnership with UNDRR represents a significant step in embedding disaster risk financing into the broader resilience architecture of the Pacific. By combining financial protection with proactive disaster management, we are ensuring that Pacific governments have both the liquidity and the foresight to respond effectively to disasters.”
Marco Toscano-Rivalta, Chief, UNDRR Regional Office, Asia and the Pacific, added, “UNDRR is proud to join forces with PCRIC in advancing innovative and inclusive financing solutions that empower Pacific Island Countries to reduce risk and build resilience. Together, we will strengthen capacities, leverage data, and promote anticipatory action to safeguard communities, livelihoods and economies.”
